Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Loans and Loans Held for Sale

Loans are presented net of unearned income. Unearned income consisted of net deferred loan fees and costs of $6.6 million at December 31, 2023 and $7.4 million at December 31, 2022 and a discount related to purchase accounting fair value adjustments of $3.1 million at December 31, 2023 and $4.5 million at December 31, 2022.

The following table summarizes the composition of originated and acquired loans as of the dates presented:


(dollars in thousands)	December 31, 2023		December 31, 2022
Commercial real estate	$	2,659,135	$	2,538,839
Commercial and industrial	1,436,183		1,510,392
Commercial construction	350,583		381,963
Business banking	1,360,765		1,205,944
Consumer real estate	1,731,778		1,421,953
Other consumer	114,897		124,878
Total Portfolio Loans	$	7,653,341	$	7,183,969
Loans held for sale	153		16
Total Loans(1)	$	7,653,494	$	7,183,985

(1) Excludes interest receivable of $35.3 million at December 31, 2023 and $28.3 million at December 31, 2022. Interest receivable is included in other assets in the Consolidated Balance Sheets.

Modifications to Borrowers Experiencing Financial Difficulty

The following table presents the amortized cost of loans to borrowers experiencing financial difficulty by portfolio segment and type of modification during the periods presented:














	Twelve Months Ended December 31, 2023
(dollars in thousands)	Term Extension		Term Extension and Interest Rate Reduction		Total		% of Portfolio Segment
Commercial real estate	$	13,836	$	—	$	13,836	0.52	%
Commercial industrial	16,877		—		16,877		1.18	%
Commercial construction	—		—		—		—	%
Business banking	120		—		120		0.01	%
Consumer real estate	61		189		250		0.01	%

Total(1)	$	30,894	$	189	$	31,083	0.41	%
(1) Excludes loans that were fully paid off or fully charged-off by period end.

The following table describes the effect of loan modifications made to borrowers experiencing financial difficulty during the periods presented:


	Twelve Months Ended December 31, 2023
		Weighted-Average Term Extension (in months)	Weighted-Average Interest Rate Reduction
Commercial real estate			4	—
Commercial industrial			5	—
Commercial construction			—	—
Business banking			19	—
Consumer real estate			168	2%

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table presents the aging analysis of modifications to borrowers experiencing financial difficulty in the last 12 months as of the date presented:


	December 31, 2023
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Commercial real estate	$	13,836	$	—	$	—	$	—	$	13,836
Commercial industrial	16,468		—		—		409		16,877
Commercial construction	—		—		—		—		—
Business banking	120		—		—		—		120
Consumer real estate	250		—		—		—		250

Total	$	30,674	$	—	$	—	$	409	$	31,083

A payment default is defined as a loan having a payment past due 90 days or more after a modification took place. There were no loans that were modified within the last 12 months that had a payment default during the twelve months ended December 31, 2023. Additionally, we had three commitments to lend an additional $1.6 million to borrowers experiencing financial difficulty that had a modification during 2023.

The effect of modifications made to borrowers experiencing financial difficulty is already included in the ACL because of the measurement methodologies used to estimate the ACL, therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification

Troubled Debt Restructurings

Prior to the adoption of ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures , we evaluated all substandard commercial and consumer loans that had experienced a forbearance or modification of existing terms to determine if they should be designated as troubled debt restructurings, or TDRs.

TDRs were returned to accruing status when the ultimate collectability of all contractual amounts due, according to the restructured agreement, was not in doubt and there was a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring. There was one $0.2 million TDR returned to accruing status during 2022.

The following table summarizes TDRs as of the date presented:


	December 31, 2022
(dollars in thousands)	Accruing TDRs		Nonaccruing TDRs		Total TDRs
Commercial real estate	$	—	$	—	$	—
Commercial and industrial	626		—		626
Commercial construction	1,655		—		1,655
Business banking	438		1,087		1,525
Consumer real estate	6,168		1,798		7,966
Other consumer	4		9		13
Total	$	8,891	$	2,894	$	11,785

The following table presents the TDRs by portfolio segment and type of concession for the periods presented:


	Twelve Months Ended December 31, 2022
	Number of Contracts	Type of Modification										Total Post-Modification Outstanding Recorded Investment(2)		Total Pre-Modification Outstanding Recorded Investment(2)
(dollars in thousands)		Bankruptcy(1)		Other		Extend Maturity		Modify Rate		Modify Payments
Commercial real estate	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial industrial	—	—		—		—		—		—		—		—
Commercial construction	—	—		—		—		—		—		—		—
Business banking	2	—		154		—		—		—		154		203
Consumer real estate	23	1,436		—		610		—		—		2,046		2,558
Other consumer	2	11		—		—		—		—		11		15
Total	27	$	1,447	$	154	$	610	$	—	$	—	$	2,211	$	2,776
(1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end.

As of December 31, 2022, we had 16 commitments to lend an additional $0.4 million on TDRs.

Defaulted TDRs were defined as loans having a payment default of 90 days or more after the restructuring takes place that were restructured within the last 12 months prior to defaulting. There were no TDRs that defaulted during 2022.

The following table is a summary of nonperforming assets as of the dates presented:


	Nonperforming Assets
(dollars in thousands)	December 31, 2023			December 31, 2022
Nonperforming Assets
Nonaccrual Loans		$	22,947		$	19,052
OREO		75			3,065
Total Nonperforming Assets		$	23,022		$	22,117

The following table presents a summary of the aggregate amount of loans to certain officers and directors of S&T or any affiliates of such persons as of the dates presented:


	December 31,
(dollars in thousands)	2023		2022
Balance at beginning of year	$	4,128	$	6,157
New loans	936		1,085
Repayments or no longer considered a related party	(881)		(3,114)
Balance at End of Year	$	4,183	$	4,128

Allowance for Credit Losses

We maintain an ACL at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer.

The following are key risks within each portfolio segment:

CRE—Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied.

C&I—Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.

Commercial Construction—Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While these loans are generally confined to the construction/development period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.

Business Banking—Commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. The business banking portfolio is monitored by utilizing a standard and closely managed process focusing on behavioral and performance criteria. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and business.

Consumer Real Estate—Loans secured by first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt.

Other Consumer—Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

Management monitors various credit quality indicators for the commercial, business banking and consumer loan portfolios, including changes in risk ratings, nonperforming status and delinquency on a monthly basis.

We monitor the commercial loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention or substandard.

Our risk ratings are consistent with regulatory guidance and are as follows:

Pass—The loan is currently performing and is of high quality.

Special Mention—A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date.

Substandard—A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of

the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful—Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.

The following tables present loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the dates presented:


	December 31, 2023
	Risk Rating
(dollars in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Pass	$	276,677	$	323,463	$	433,308	$	237,901	$	383,799	$	781,465	$	32,418	$	—	$	2,469,031
Special mention	—		1,006		6,000		—		24,887		75,428		—		—		107,321
Substandard	—		—		—		2,355		10,685		69,743		—		—		82,783
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate	276,677		324,469		439,308		240,256		419,371		926,636		32,418		—		2,659,135
Year-to-date Gross Charge-offs	—		—		—		—		—		1,706		—		—		1,706

Commercial and Industrial
Pass	171,672		231,114		185,884		53,101		47,063		183,165		482,490		—		1,354,489
Special mention	189		620		10,242		—		—		8,848		4,126		—		24,025
Substandard	—		244		14,510		1,595		5,795		1,892		33,633		—		57,669
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial and Industrial	171,861		231,978		210,636		54,696		52,858		193,905		520,249		—		1,436,183
Year-to-date Gross Charge-offs	—		—		—		—		3,412		15,842		—		—		19,254

Commercial Construction
Pass	75,596		154,456		82,313		14,845		151		4,054		14,208		—		345,623
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		4,576		384		—		—		4,960
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	75,596		154,456		82,313		14,845		4,727		4,438		14,208		—		350,583
Year-to-date Gross Charge-offs	—		—		—		—		451		—		—		—		451

Business Banking
Pass	270,129		262,535		204,874		87,346		96,371		321,360		96,618		523		1,339,756
Special mention	—		55		251		224		33		3,508		37		172		4,280
Substandard	—		16		2,486		448		3,170		9,898		99		612		16,729
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	270,129		262,606		207,611		88,018		99,574		334,766		96,754		1,307		1,360,765
Year-to-date Gross Charge-offs	—		67		43		1		88		1,073		34		—		1,306

Consumer Real Estate
Pass	311,887		334,879		147,652		101,999		67,402		183,283		551,368		22,206		1,720,676
Special mention	—		—		—		—		—		189		—		—		189
Substandard	—		583		198		42		488		6,322		712		2,568		10,913
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	311,887		335,462		147,850		102,041		67,890		189,794		552,080		24,774		1,731,778
Year-to-date Gross Charge-offs	—		1		—		5		1		43		75		296		421

Other Consumer
Pass	11,286		11,965		6,483		3,842		1,062		526		76,426		3,109		114,699
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		24		5		20		146		—		3		198
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	11,286		11,965		6,507		3,847		1,082		672		76,426		3,112		114,897
Year-to-date Gross Charge-offs	830		146		175		19		37		5		—		288		1,500

Pass	1,117,247		1,318,412		1,060,514		499,034		595,848		1,473,853		1,253,528		25,838		7,344,274
Special mention	189		1,681		16,493		224		24,920		87,973		4,163		172		135,815
Substandard	—		843		17,218		4,445		24,734		88,385		34,444		3,183		173,252
Doubtful	—		—		—		—		—		—		—		—		—
Total Loan Balance	$	1,117,436	$	1,320,936	$	1,094,225	$	503,703	$	645,502	$	1,650,211	$	1,292,135	$	29,193	$	7,653,341

Current Year-to-date Gross Charge-offs	$	830	$	214	$	218	$	25	$	3,989	$	18,669	$	109	$	584	$	24,638


	December 31, 2022
	Risk Rating
(dollars in thousands)	2022		2021		2020		2019		2018		2017 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Pass	$	292,732	$	360,423	$	267,743	$	422,872	$	227,006	$	704,600	$	21,666	$	—	$	2,297,042
Special mention	—		—		—		13,187		20,090		101,112		—		—		134,389
Substandard	—		—		1,306		13,434		14,845		77,823		—		—		107,408
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate	292,732		360,423		269,049		449,493		261,941		883,535		21,666		—		2,538,839

Commercial and Industrial
Pass	253,324		264,012		88,544		63,190		62,874		138,250		559,777		—		1,429,971
Special mention	—		25,436		—		5,103		1,885		7,132		19,280		—		58,836
Substandard	372		—		—		5,705		1,152		1,891		12,465		—		21,585
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial and Industrial	253,696		289,448		88,544		73,998		65,911		147,273		591,522		—		1,510,392

Commercial Construction
Pass	120,655		159,737		40,762		6,338		3,953		2,297		27,284		—		361,026
Special mention	—		10,954		—		8,104		—		—		—		—		19,058
Substandard	—		—		—		—		—		1,879		—		—		1,879
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	120,655		170,691		40,762		14,442		3,953		4,176		27,284		—		381,963

Business Banking
Pass	287,520		233,499		87,926		107,819		80,549		276,843		104,354		645		1,179,155
Special mention	—		157		146		—		2,790		3,945		793		95		7,926
Substandard	159		67		3,077		1,912		1,550		11,391		124		551		18,831
Doubtful	—		—		—		—		—		32		—		—		32
Total Business Banking	287,679		233,723		91,149		109,731		84,889		292,211		105,271		1,291		1,205,944

Consumer Real Estate
Pass	296,900		148,790		91,477		74,155		30,658		191,228		552,994		21,547		1,407,749
Special mention	—		—		—		—		—		882		—		—		882
Substandard	48		213		136		428		1,373		8,059		655		2,410		13,322
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	296,948		149,003		91,613		74,583		32,031		200,169		553,649		23,957		1,421,953

Other Consumer
Pass	20,046		10,819		5,427		3,242		1,013		724		82,125		1,404		124,800
Special mention	—		—		—		—		—		—		—		—		—
Substandard	8		—		—		28		21		—		—		21		78
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	20,054		10,819		5,427		3,270		1,034		724		82,125		1,425		124,878


Pass	1,271,177		1,177,280		581,879		677,616		406,053		1,313,942		1,348,200		23,596		6,799,743
Special Mention	—		36,547		146		26,394		24,765		113,071		20,073		95		221,091
Substandard	587		280		4,519		21,507		18,941		101,043		13,244		2,982		163,103
Doubtful	—		—		—		—		—		32		—		—		32
Total Loan Balance	$	1,271,764	$	1,214,107	$	586,544	$	725,517	$	449,759	$	1,528,088	$	1,381,517	$	26,673	$	7,183,969

We monitor the delinquent status of the commercial and consumer portfolios on a monthly basis. Loans are considered nonaccrual when interest and principal are 90 days or more past due or management has determined that a material deterioration in the borrower’s financial condition exists. The risk of loss is generally highest for nonaccrual loans.

The following tables present loan balances by year of origination and accrual and nonaccrual status for our portfolio segments as of the dates presented:


	December 31, 2023
(dollars in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Accrual	$	276,677	$	324,469	$	439,308	$	240,256	$	419,371	$	920,316	$	32,418	$	—	$	2,652,815
Nonaccrual	—		—		—		—		—		6,320		—		—		6,320
Total Commercial Real Estate	276,677		324,469		439,308		240,256		419,371		926,636		32,418		—		2,659,135

Commercial and Industrial
Accrual	171,861		231,978		210,636		54,696		52,858		193,257		520,019		—		1,435,305
Nonaccrual	—		—		—		—		—		648		230		—		878
Total Commercial and Industrial	171,861		231,978		210,636		54,696		52,858		193,905		520,249		—		1,436,183

Commercial Construction
Accrual	75,596		154,456		82,313		14,845		151		4,054		14,208		—		345,623
Nonaccrual	—		—		—		—		4,576		384		—		—		4,960
Total Commercial Construction	75,596		154,456		82,313		14,845		4,727		4,438		14,208		—		350,583

Business Banking
Accrual	270,129		262,606		207,611		87,979		99,354		330,902		96,754		1,283		1,356,618
Nonaccrual	—		—		—		39		220		3,864		—		24		4,147
Total Business Banking	270,129		262,606		207,611		88,018		99,574		334,766		96,754		1,307		1,360,765

Consumer Real Estate
Accrual	311,887		335,086		147,689		101,518		67,577		186,909		551,858		22,942		1,725,466
Nonaccrual	—		376		161		523		313		2,885		222		1,832		6,312
Total Consumer Real Estate	311,887		335,462		147,850		102,041		67,890		189,794		552,080		24,774		1,731,778

Other Consumer
Accrual	11,286		11,965		6,499		3,656		1,082		541		76,426		3,112		114,567
Nonaccrual	—		—		8		191		—		131		—		—		330
Total Other Consumer	11,286		11,965		6,507		3,847		1,082		672		76,426		3,112		114,897

Accrual	1,117,436		1,320,560		1,094,056		502,950		640,393		1,635,979		1,291,683		27,337		7,630,394
Nonaccrual	—		376		169		753		5,109		14,232		452		1,856		22,947
Total Loan Balance	$	1,117,436	$	1,320,936	$	1,094,225	$	503,703	$	645,502	$	1,650,211	$	1,292,135	$	29,193	$	7,653,341


	December 31, 2022
(dollars in thousands)	2022		2021		2020		2019		2018		2017 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Accrual	$	292,732	$	360,423	$	269,049	$	449,493	$	261,941	$	876,435	$	21,666	$	—	$	2,531,739
Nonaccrual	—		—		—		—		—		7,100		—		—		7,100
Total Commercial Real Estate	292,732		360,423		269,049		449,493		261,941		883,535		21,666		—		2,538,839

Commercial and Industrial
Accrual	253,696		289,448		88,544		73,998		65,858		147,273		591,292		—		1,510,109
Nonaccrual	—		—		—		—		53		—		230		—		283
Total Commercial and Industrial	253,696		289,448		88,544		73,998		65,911		147,273		591,522		—		1,510,392

Commercial Construction
Accrual	120,655		170,691		40,762		14,442		3,953		3,792		27,284		—		381,579
Nonaccrual	—		—		—		—		—		384		—		—		384
Total Commercial Construction	120,655		170,691		40,762		14,442		3,953		4,176		27,284		—		381,963

Business Banking
Accrual	287,679		233,656		91,149		109,479		83,689		289,435		105,172		1,195		1,201,454
Nonaccrual	—		67		—		252		1,200		2,776		99		96		4,490
Total Business Banking	287,679		233,723		91,149		109,731		84,889		292,211		105,271		1,291		1,205,944

Consumer Real Estate
Accrual	296,948		148,868		91,085		73,947		31,646		196,384		553,441		23,108		1,415,427
Nonaccrual	—		135		528		636		385		3,785		208		849		6,526
Total Consumer Real Estate	296,948		149,003		91,613		74,583		32,031		200,169		553,649		23,957		1,421,953

Other Consumer
Accrual	20,054		10,819		5,303		3,270		1,034		593		82,125		1,411		124,609
Nonaccrual	—		—		124		—		—		131		—		14		269
Total Other Consumer	20,054		10,819		5,427		3,270		1,034		724		82,125		1,425		124,878

Accrual	1,271,764		1,213,905		585,892		724,629		448,121		1,513,912		1,380,980		25,714		7,164,917
Nonaccrual	—		202		652		888		1,638		14,176		537		959		19,052
Total Loan Balance	$	1,271,764	$	1,214,107	$	586,544	$	725,517	$	449,759	$	1,528,088	$	1,381,517	$	26,673	$	7,183,969

The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented:


	December 31, 2023
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Nonaccrual		Total Past Due Loans		Total Loans
Commercial real estate	$	2,649,412	$	—	$	3,403	$	6,320	$	9,723	$	2,659,135
Commercial and industrial	1,435,301		4		—		878		882		1,436,183
Commercial construction	345,623		—		—		4,960		4,960		350,583
Business banking	1,351,048		3,525		2,045		4,147		9,717		1,360,765
Consumer real estate	1,719,751		3,352		2,363		6,312		12,027		1,731,778
Other consumer	114,138		366		63		330		759		114,897
Total	$	7,615,273	$	7,247	$	7,874	$	22,947	$	38,068	$	7,653,341


	December 31, 2022
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Nonaccrual		Total Past Due Loans		Total Loans
Commercial real estate	$	2,523,315	$	8,424	$	—	$	7,100	$	15,524	$	2,538,839
Commercial and industrial	1,505,805		4,304		—		283		4,587		1,510,392
Commercial construction	381,579		—		—		384		384		381,963
Business banking	1,199,586		1,583		285		4,490		6,358		1,205,944
Consumer real estate	1,409,907		3,617		1,903		6,526		12,046		1,421,953
Other consumer	124,384		165		60		269		494		124,878
Total	$	7,144,576	$	18,093	$	2,248	$	19,052	$	39,393	$	7,183,969

The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented:


	December 31, 2023
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	7,100	$	6,320	$	5,940	$	46
Commercial and industrial	283		878		—		38
Commercial construction	384		4,960		4,576		—
Business banking	4,490		4,147		—		209
Consumer real estate	6,526		6,312		—		308
Other consumer	269		330		—		2
Total	$	19,052	$	22,947	$	10,516	$	603

(1) Represents only cash payments received and applied to interest on nonaccrual loans.


	December 31, 2022
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	31,488	$	7,100	$	5,649	$	580
Commercial and industrial	15,239		283		—		148
Commercial construction	2,471		384		—		171
Business banking	9,641		4,490		933		228
Consumer real estate	7,294		6,526		—		257
Other consumer	158		269		—		1
Total	$	66,291	$	19,052	$	6,582	$	1,385

(1) Represents only cash payments received and applied to interest on nonaccrual loans.

The following table presents collateral-dependent loans as of December 31, 2023:


	December 31, 2023
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets		Other
Commercial real estate	$	5,940	$	—	$	—
Commercial and industrial	—		—		—
Commercial construction	4,576		—		—
Business banking	—		—		—
Consumer real estate	—		—		—

Total	$	10,516	$	—	$	—

The following table presents collateral-dependent loans by class of loans as of December 31, 2022:


	December 31, 2022
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets		Other
Commercial real estate	$	5,649	$	—	$	—
Commercial and industrial	—		626		—
Commercial construction	1,655		—		—
Business banking	260		1,112		154
Consumer real estate	561		—		—

Total	$	8,125	$	1,738	$	154

The following tables present activity in the ACL for the periods presented:



	Twelve Months Ended December 31, 2023
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	41,428	$	25,710	$	6,264	$	12,547	$	12,105	$	3,286	$	101,340
Impact of ASU 2022-02	—		75		215		251		278		(251)		568
Provision for credit losses on loans(1)	(2,803)		18,366		(648)		1,088		2,493		744		19,240
Charge-offs	(1,706)		(19,254)		(451)		(1,306)		(421)		(1,500)		(24,638)
Recoveries	967		9,641		2		278		208		360		11,456
Net (Charge-offs)/ Recoveries	(739)		(9,613)		(449)		(1,028)		(213)		(1,140)		(13,182)
Balance at End of Period	$	37,886	$	34,538	$	5,382	$	12,858	$	14,663	$	2,639	$	107,966
(1) Excludes the provision for credits losses for unfunded commitments.


	Twelve Months Ended December 31, 2022
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	50,700	$	19,727	$	5,355	$	11,338	$	8,733	$	2,723	$	98,576
Provision for credit losses on loans(1)	(9,064)		4,797		908		3,644		3,536		1,538		5,359
Charge-offs	(827)		(5,797)		—		(3,314)		(304)		(1,375)		(11,617)
Recoveries	619		6,983		1		879		140		400		9,022
Net (Charge-offs)/Recoveries	(208)		1,186		1		(2,435)		(164)		(975)		(2,595)
Balance at End of Period	$	41,428	$	25,710	$	6,264	$	12,547	$	12,105	$	3,286	$	101,340
(1) Excludes the provision for credits losses for unfunded commitments.